Being financially independent is important as it gives the individual the confidence to live life in a dignified manner and make choices independently without having to rely on the whims of another. So, for all of you who want that their mothers to be financially independent, gifting them a credit card is an ideal solution. Often our parents may be reluctant to accept new technology or products due to lack of knowledge or because they are hesitant about using a new product. Thus it is crucial that we help them in accepting new products and technology by providing them the right information.

How Can Credit Cards Help in Financial Freedom?

It is essential that you let your mother know that using a credit card is not complicated. It is something fairly simple and makes her transactions and life much simpler. So here is how credit cards can help your mom be financially independent:

Freedom from Carrying Cash:

Whether one goes for shopping or one has to travel abroad carrying cash could prove to be a hassle especially if one needs to carry a large amount. It is not only cumbersome but there could be a situation when you may be stuck without cash because you underestimated your requirement or you were not sure that you might require cash when you go out. In such a situation a credit card can come to your rescue. You are saved from carrying cash around and also will not be stuck due to lack of cash.

A More Secure Way of Transacting:

Carrying cash is not only cumbersome but it is risky too. If your pocket gets picked or you lose your wallet then you may end up incurring a huge loss. Well, one can turn around and say that even a credit card can get lost. However the difference lies in the fact that the card cannot be used without the pin number. If the user losses his/her card, unlike cash the card cannot be used by the person who finds it or takes it. The card can be used only after successful authentication. As soon as the card holder informs the card issuing company the card will be blocked and no further use of it will be possible. The user can then get a new card issued.

Can Help In Creating a Credit or Improving Credit Score:

Credit score is a must for someone who is seeking any kind of loan, so in the absence of a credit score getting access to any kind of credit can be difficult. This can prove to be a severe impediment if someone wants to buy a new vehicle or take a loan for starting a new venture. A credit card can help in creating a credit trail in case there is no credit history and in case there already a credit score, regular payments and careful card usage can help in improving the credit rating.

Is Add-on Card the Right Option?

When you are gifting your mother a card you could choose to gift her add-on card or a card which is in her own name. In case of add on card you will be the main holder and she will get the card in her name but the responsibility to pay the bills will be yours. Here the card transactions will be reflected in your credit report. If you are gifting her card where she is the primary applicant then you can help her in choosing the right card, help her fill out the form and can also assist her in completing the documentation. Here she pays the bills on her own and the card transactions reflect in her credit report.

Which option is best suited will depend on various factors. If your mother has a regular income flow and she has the required documents then she can get be the primary applicant. If she does not meet the eligibility criteria then you will have to gift her add-on card. Also make sure you choose a card as per her requirements.